Tesla cuts Model 3 price for second time this year Reuters

Daniel Fowler
February 7, 2019

That leaves the starting price of a Model 3 at $42,900, still substantially above the $35,000 price Tesla Chief Executive Officer Elon Musk originally promised.

Now, Tesla has updated its website to the new pricing which shows that once the federal tax credit of $US3,750 and a fuel savings (based on 10,000 miles and a cost of $US2.85 per gallon) are applied, United States drivers can buy the mid-range Model 3 for $US34,850 ($US49,049).

Ahead of the debut of several direct competitors and the disappearance of the $7,500 tax credit, the automaker has made fielding cheaper versions of the Model 3 a priority, in addition to driving down production costs.

Tesla ended its customer referral incentive plan on february 1 after Musk tweeted that the referral program was "adding too much cost to the cars, especially Model 3".

Royal Commission report released
Most are seeking to sell their financial advice and wealth management units, where numerous problems occurred. Compensation alone may eventually top A$1 billion, ASIC's then-deputy chairman Peter Kell told the inquiry.

Musk told a Twitter user that the company is "doing everything we can" to drop the Model 3 base price to $35,000, without credits.

Tesla didn't comment on why it stopped this loyalty program, however, customers still hope that the Model 3 vehicle will be available at a more accessible price soon.

The company is ramping up production of the Model 3 and trying to make it more accessible for mainstream vehicle buyers. "It's a super hard grind". All variants of the Model 3 will now start at $1,100 less, with the tradeoff being the end of the customer referral program.

Questioned by another follower as to how this would affect European prices - the first shipment of Model 3s having just arrived in Europe as of Tuesday - Musk responded that Value-Added Tax and import duties would result in a 30% higher price.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER